Ancient Ethereum Whale With Over 12,000 ETH Creates Noise

The Ethereum market is booming as long-dormant “whales” (large investors with huge amounts of cryptocurrencies) have resurfaced and transferred large amounts of ETH to the Kraken exchange. While the move sparked speculation about a possible fall in prices, broader market trends suggest a more complicated picture.

On-chain analytics firm Spot On Chain revealed that investors who participated in Ethereum’s initial coin offering (ICO) in 2014 recently deposited 1,069 ETH, worth approximately $3.56 million, into Kraken. .

Traditionally, deposits on exchanges are seen as a sign of intent to sell, which can put downward pressure on the ETH price.

This whale’s activity is particularly noteworthy in terms of its participation in the Ethereum ICO. Back in 2014, they acquired 12,566 ETH for just $0.30 per token. Although the recent transfer represents only a small portion of their holdings, the sale price (over $3,300 per ETH) represents a huge profit for early investors.

Ethereum market shows signs of accumulation

While whale movements may signal a potential decline, on-chain data reveals broader trends that could offset the impact. According to blockchain analytics firm IntoTheBlock, the past quarter has seen massive data breaches. Ethereum Funds from crypto exchanges total a staggering $4 billion.

This move suggests that many investors are accumulating ETH in anticipation of future price increases.

Ether market cap currently at $409 billion. Chart: TradingView.com

Dencun upgrade boosts Ethereum network activity

This news comes on the heels of Ethereum’s success Denkun upgradeThis upgrade was intended to address network scalability issues, specifically targeting high transaction fees and slow processing times.

IntoTheBlock reports a spike in activity for its main optimistic rollup (layer 2 scaling solution) following the upgrade, and early signs look positive.

Weekly transaction volume reached a high of 32 million, indicating an increase in network usage. Although gas prices have increased recently, many upgraded Layer 2 solutions are initially significantly cheaper.

Market uncertainty remains

The combined impact of whale sales, broader accumulation trends, and the impact of the Dencun upgrade on network activity makes it difficult to predict the near-term direction of the Ethereum market.

While a whale sell-off could cause prices to fall, the broader accumulation trend suggests underlying bullish sentiment. If Dencun’s upgrades are successful in reducing transaction fees and increasing network usage, investor confidence could further increase.

Featured images from Pexels, charts from TradingView

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